By Tom Polansek
CHICAGO, Jan 24 (Reuters) – U.S. wheat futures advanced on Monday amid fears that Russia may invade Ukraine and disrupt grain shipments from the region, a major global supplier, traders said.
Corn futures also strengthened and set a seven-month high, while soybean futures weakened.
Grain traders kept their attention on Russia because it is the world’s top wheat exporter. Ukraine is projected to be the No. 4 wheat exporter and third-largest corn exporter.
An interruption to the flow of grain from the Black Sea region could add fuel to food inflation and slow shipments to places like the Middle East, analysts said.
“Traders are adding some risk premium with the threat of conflict between Russia and Ukraine rising,” brokerage CHS Hedging said.
The most-active wheat Wv1 contract on the Chicago Board of Trade (CBOT) settled up 20-1/2 cents at $8.00-1/2 a bushel. The contract reached a session high of $8.02-1/2, near a peak last week that was the highest price since late December.
EU wheat also rose.
CBOT corn Cv1 closed up 4-3/4 cents at $6.21 a bushel. That was near its session high of $6.21-1/2, the highest price since June.
Soybeans Sv1 finished 11-1/4 cents lower at $14.03 a bushel, after climbing last week to their highest price since June.
Improving crop weather in South American growing areas weighed on soybeans, traders said, after concerns about dry, hot conditions in Argentina and Brazil recently supported prices.
“Brazil and Argentina received much needed rains over the weekend,” CHS Hedging said.
A selloff in equities and oil also hung over the soy market, before Wall Street recovered, analysts said.
In demand news, exporters, in separate deals, sold 150,000 tonnes of U.S. corn to unknown buyers and 132,000 tonnes of U.S. soy to China, the U.S. Department of Agriculture said.
Algeria’s state grains agency issued a tender to buy a nominal 50,000 tonnes of milling wheat from optional origins, European traders said.
(Reporting by Tom Polansek in Chicago and Nigel Hunt in London. Additional reporting by Naveen Thukral in Singapore; Editing by Marguerita Choy and David Evans)
(([email protected]; https://twitter.com/tpolansek))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com